RBI imposes penalty on The Pij Peoples Co-operative Bank Ltd., Pij, Dist. Kheda
The Reserve Bank of India has imposed a
monetary penalty ₹ 1.00 lakh
(Rupees One Lakh only) on the Pij People’s Co-operative Bank Ltd., Pij, Dist.
Kheda (Gujarat), for violation pertaining to risk categorization of accounts
and non-reporting of Cash Transaction Reports (CTRs) to Financial Intelligence
Unit-India (FIU-IND), New Delhi.
Reserve Bank of India has advised banks to
prepare a profile for each customer based on risk categorization. At the same
time, RBI has reemphasized the need for periodical review of risk categorization.
As continuous monitoring cannot be done manually, an appropriate software
application has to be in place to throw alerts when the transactions are
inconsistent with risk categorization and updated profile of customers.
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